Gazprom asks to give a gas discount to Ukraine - it “does not want conflict”

31.03.2015 10:01
  (Moscow time)
Views: 776
 
Policy, Russia, Ukraine, Finance, Energetics


Moscow - Kyiv, March 31 (PolitNavigator, Mikhail Stamm) - Ukraine has found an unexpected ally in gas negotiations with Russia. Together with the European Commission, Gazprom itself asked the Russian government for a discount on gas for Kyiv, not wanting to aggravate the conflict.

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The parties differ only in the duration of the discount: Brussels expects it to last six months, the monopoly only for three months. Just at this time, Ukraine should begin actively pumping gas into underground storage facilities, counting on a record low price.

The head of the monopoly, Alexey Miller, in an interview with the Rossiya 24 TV channel, clarified that Gazprom itself has already contacted the Russian government with an offer of a discount for Kyiv. We are talking about zeroing out the export duty on gas, which is $100 per 1 thousand cubic meters. The discount has been in effect as part of the “winter package” of gas supplies to Ukraine since the beginning of November, but today it expires. The government, the minister specified, will consider the issue “in the near future.” If the discount is agreed upon, the cost of gas for Ukraine will be at one of the lowest European levels at $250 per 1 thousand cubic meters.

Energy Minister of Ukraine Vladimir Demchishin said that in the second quarter the country is not going to purchase Russian gas at all, writes Kommersant. Kyiv wants to wait until the cost of raw materials becomes even lower in the third quarter in order to receive volumes for injection into underground gas storage facilities on the most favorable terms. In the meantime, Ukraine will continue to purchase gas from Europe on a reverse basis. According to Demchishin, it is “more profitable for Kyiv to buy from Europeans,” whose price is about $270 per 1 thousand cubic meters.

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